A recently formed, Bermuda-based, enterprise risk software development consultancy called Treefrog Consulting Ltd. aims to target both the traditional reinsurance sector and the alternative reinsurance capital and insurance-linked securities (ILS) space with its services.
Treefrog Consulting aims to bring enterprise level risk software development services to these markets, leveraging the years of experience its employees have in developing systems designed to manage and price catastrophe risks.

President of Treefrog Consulting Dmitry Mnushkin said; “Reinsurers as well as CAT and ILS funds have long struggled in Bermuda finding the right team to build their core risk and portfolio management systems. There are no local consultancies specializing in this space, thus forcing companies to look abroad for solutions. With the launch of Treefrog Consulting Ltd. in Bermuda, we are proud to offer experienced, efficient and highly cost-competitive software development services specifically targeting this sector.”

Mnushkin has 14 years of experience building software for one of the world’s leading reinsurers, with much of his work focused on the black-box systems that catastrophe reinsurers use to price and manage portfolios of risk.

Leveraging his years of experience in designing and developing software for catastrophe reinsurers, Mnushkin has brought together a capable development team and aims to help start-ups and established reinsurance players develop and upgrade their systems to better understand and inform their risk and capital allocation strategies.

One of Treefrog’s existing clients is the well-known Florida de-pop insurer, Weston insurance Company, which took on a significant amount of high risk policies from Florida’s Citizens Property Insurance’s coastal wind-only account program recently.

Commenting on the work undertaken for Weston, Mnushkin said; “We worked closely with Weston to make their portfolio analysis algorithm more efficient, and were able to reduce their portfolio optimization run times by a factor of 20. We are now working with Weston to integrate this algorithm into their automated quoting system for new business.”

Michael Lyons, President & Chief Operating Officer at Weston, added; “We are very pleased to be working with Treefrog. Weston’s ability to analyze the marginal reinsurance cost of assumed risk in real-time is a significant market differentiator, which greatly enhances Weston’s enterprise risk management. Working with Treefrog has dramatically improved our system utilization and average run times, which makes our tools more useful to us.”

Mnushkin believes that the specialised capabilities at Treefrog Consulting, along with its desire to target the catastrophe risk and reinsurance markets across the different sources of traditional and non-traditional capital, will bring value to Bermuda’s marketplace. He believes this local expertise will help Bermuda expand its capacity to service both traditional reinsurance and alternative risk transfer vehicles.

Mnushkin commented; “We recognize that providing this service is not only good for us, but also makes it easier for new Class 3 and 4 exempt companies to operate on the island. We are excited to play our part in making Bermuda a more attractive place to do business.”